Free Hooded Towel Patterns & Tutorials: {Sewing}
Here’s a nice mix of tutorials that are great for both the beach and the tub! You’ll find a few different ideas for embellishing as well as some projects designed just for baby which are nice for gift-giving. I’ll be adding to this list as I find more goodies with something unique to offer 
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thecottagehome.blogspot.ca
Backpack: This clever project is a backpack & hooded towel in one!
thetraintocrazy.com
figtreequilts.typepad.com
Frog: Takes about an hour (max) and less than $10 to make.
crazylittleprojects.com
gettogetherideas.com
Monster: Fun for toddlers, you’ll need an old sheet (or fabric of choice), fleece (for eyes & back spikes), flannel (for eyes and teeth).
feelincrafty.wordpress.com
prudentbaby.com
Spiced Up: Trimmed with 1/3 yard of a cotton print.
obsessivelystitching.blogspot.ca
thedomesticnotebook.blogspot.ca
melissaesplin.com
purlbee.com
For Baby: Made with pretty material, terry cloth and double-fold bias tape.
sew4home.com
Great job on the hooded towels. I have made hooded towels for all my grandchildren and they love it. A tip I would like to share is to use a Walking Foot on your sewing machine when making these towels. It makes sewing a lot easier. A little expensive but worth every penny.
I am looking for a pattern or suggestion for a towel wrap that has arms so that the boys can hold on to the railing when they go from the shower room to the pool. Their towels fall off and they are tripping on them. Something very simple would be great.
Maybe you can sew two loops (kind of like handles) inside for them to slip their arms (or wrists) through.
How do you make a unicorn hood towel?
The unicorn part is really tricky.
Thank you for your suggestion